Indonesian tycoon Sukanto Tanoto. — Bloomberg
SINGAPORE: Units of Singapore-based Royal Golden Eagle (RGE), owned by Indonesian tycoon Sukanto Tanoto, are in the midst of obtaining sustainability-linked loans as the group aims to shift its fundraising to environmentally-friendly options.
The firm’s agribusiness units, Apical Group and Asian Agri, are in discussions with lenders for financing that comes with commitments from borrowers to meet certain environmental or social targets, according to people familiar with the matter.
A company spokesperson confirmed when asked.
Meanwhile, its pulp and paper arm, Asia Pacific Resources International Ltd, recently signed a similar US$1.5bil-equivalent facility with 38 banks.
Apical and Asian Agri held a roadshow in Singapore on June 27, with banks from other regions dialling in. Terms for the new syndicated financing are currently being finalised.
The latest borrowings follow a series of sustainability-linked loans raised by RGE since 2021, marking the group’s commitment to convert all its funding into such facilities, according to a January statement.
These ambitions come amid the ongoing scrutiny of Tanoto’s existing pulp and paper business, which spans factories in China to a plantation in Indonesia, due to environmental concerns. — Bloomberg
